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Question 1: What are the requirements for something to be considered money? Why does the dollar have value?
Question 2: What does the money supply consist of and what are the respective amounts in the total money supply for the United States?
Question 3: What are the primary functions of the Fed? What role does the Federal Open Market Committee (FOMC) play in our economy?
Question 4: What role do the financial institutions (commercial banks and other institutions) play in our financial system?
Question 5: What is meant by the term "fractional-reserve banking" in our system? What are the implications for consumers?
Question 6: What are the tools available to the FED for controlling the money supply? Which are used most often? Which are most effective?
Question 7: How does the money multiplier help to determine the effects of monetary policy?
Question 8: What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?
Attachment:- FED.zip
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